Chinese collectible toymaker Pop Mart International is advancing its global retail footprint despite a recent slowdown in overseas sales, with plans to open its first European flagship store on Paris’ Boulevard Haussmann. The location is notable for its prominence alongside landmark department stores such as Galeries Lafayette and Printemps.
Pop Mart’s founder and CEO, Wang Ning, traveled to Paris last week ahead of the store’s launch. During his visit, Wang met Bernard Arnault, chairman and CEO of the luxury conglomerate LVMH, presenting him with a Pop Mart Labubu doll. The meeting included other prominent figures, such as Delphine Arnault, CEO of Dior and Bernard Arnault’s eldest daughter, and Pietro Beccari, CEO of Louis Vuitton.
The discussions between Pop Mart and LVMH followed a July meeting at Apple’s Cupertino headquarters, where Wang met with Apple CEO Tim Cook and incoming CEO John Ternus to discuss topics including creative design, digital ecosystems, and global consumer trends.
Observers suggest the interaction signals potential collaborations centered on Pop Mart’s intellectual properties (IPs). Jeff Zhang, an equity analyst at Morningstar, noted that while the association with LVMH serves primarily to elevate Pop Mart’s brand profile, the creation of co-branded premium products is unlikely to substantially increase overseas revenue in the short term. Zhang anticipates that Pop Mart’s IPs may be integrated with some of LVMH’s luxury offerings, enhancing licensing income over time.
Since October 2022, Pop Mart has steadily strengthened its ties with LVMH. That month, Kasing Lung, the Hong Kong-born artist behind Labubu, met Bernard Arnault in Paris. In December, Wu Yue, president of LVMH Greater China, joined Pop Mart as a non-executive director. Zhang explained that Wu’s appointment could pave the way for the company’s diversification beyond toys, adopting strategies similar to those of established entertainment-IP firms such as Disney and Sanrio.
Despite these initiatives, Pop Mart’s recent financial results indicate challenges. The company’s interim report in August revealed an 11.1 percent year-on-year decline in overseas revenue to 4.97 billion yuan (HK$5.8 billion) for the first half of 2023. The proportion of overseas sales within total revenue fell to 29 percent from 40.3 percent during the same period in 2022. Management has since adjusted its 2023 revenue growth expectations downward, citing the comparative difficulty of building on the previous year’s strong performance.
Pop Mart views 2026 as a period of consolidation rather than rapid expansion, with a focus on reinforcing operational fundamentals and optimizing its global retail network. As of June, the company operated 676 physical stores worldwide, including 419 in mainland China, 36 across Hong Kong, Macau, and Taiwan, 90 in the Asia-Pacific region, 86 in the Americas, and 45 in Europe and other markets.